Canada’s annual inflation rate rises to 8.1% in June

Canada’s inflation rate was up 8.1 per cent in June compared with a year ago, its largest yearly change since January 1983.

The inflation rate in May was 7.7 per cent.

Statistics Canada said price acceleration in June was largely the result of gas prices rising even faster.

In comparison to a year ago, gas prices were up more than 50 per cent.

The price acceleration in June is consistent with what economists expected, as energy and food prices continued to rise and the economy reopened further.

In its most recent rate decision, the Bank of Canada opted to hike its key interest by a full percentage point to 2.5 per cent, as fears mount over rising inflation expectations among consumers and businesses.

This report by The Canadian Press was first published July 20, 2022.